Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • FTC delivered revenue of GBP 56.3 million in FY25, up from GBP 25.4 million in FY24.
  • Filtronic secured a GBP 32.5 million post-year-end contract its largest recent order.
  • The company plans to expand UK manufacturing footprint in H1FY26.

Filtronic plc (AIM:FTC) is a UK-based designer and manufacturer of advanced RF, microwave, and millimetre-wave products, serving global clients across the aerospace, defence, space, and telecommunications sectors. The company operates through two global manufacturing sites and three engineering centres, offering solutions that span the full RF spectrum. For the 12 months ended 31 May 2025, Filtronic reported revenue of GBP 56.3 million, more than doubling from GBP 25.4 million in FY24. The significant growth was attributed to increased demand from strategic partners and successful delivery against project milestones. Operating profit rose to GBP 13.4 million, up from GBP 3.6 million a year earlier, while adjusted EBITDA increased from GBP 4.9 million to GBP 17.0 million.

Trading in the second half materially exceeded expectations due to improved operational execution and increased manufacturing capacity. Net cash stood at GBP 12.3 million, compared to GBP 5.2 million at the end of FY24, while cash at bank increased to GBP 14.5 million. The Group’s financial position is now enabling further investment in product development, facilities, and talent acquisition. Filtronic advanced several key strategic priorities in FY25, including expanding its customer-facing team and restructuring commercial operations to align with prime contractors. The company opened a new Cambridge office to attract engineering talent, and its move to a custom-built manufacturing facility in Sedgefield is scheduled for completion in the first half of FY26. This site will double Filtronic’s UK manufacturing footprint.

The company also reported increased engagement across its target markets. Notable contract wins included agreements with SpaceX, Viasat, the European Space Agency, and Airbus in the space sector, and a radar-related award from Leonardo in the defence domain. These developments contributed to record order intake in the space segment. Filtronic continued investing in innovation, expanding into higher-frequency RF bands, including the V Band, and launched the Prometheus solid-state power amplifier. A transition from Gallium Arsenide to Gallium Nitride technology is underway, with new GaN-based products scheduled for rollout in 2026.

Filtronic enters FY26 with a significant order book, increased customer engagement, and a growing pipeline across the space, defence, and aerospace markets. Although the company faces currency headwinds, particularly from a weaker US dollar, it expects long-cycle projects and existing customer relationships to provide revenue visibility over the next one to three years. Post-period-end, Filtronic secured a GBP 24.0 million contract its largest recent deal adding to the momentum. Management remains focused on execution, cost discipline, and customer delivery while investing in scalable infrastructure.

Dividend payments remain suspended, as the company prioritises reinvestment to drive long-term growth and margin expansion. The upcoming Sedgefield facility and newly developed technologies are expected to play a central role in meeting FY26 targets.

FTC shares were trading 3.39% lower at GBX 146.37 per share as on 29 July 2025.